I know a senior in the crypto space who entered the market with 100,000 yuan and now has an account valued at 42 million. He once told me a quote that enlightened me: 'Most people in this market follow the crowd; if you can control your emotions, this place will be your ATM.'
After years of experience in the crypto world, I've gradually realized: a reliable trading strategy is the 'secret weapon' to navigate volatility. The following phrases are lessons learned from practice, so take your time to appreciate them.
Entry methods
Newbies should test the waters cautiously, loading bullets in batches.
Step into the market steadily, leaving room for maneuvering, and refuse the madness of all-in betting.
Range trading section
When the price hovers at a low, a new low may emerge; accumulate heavily at points of dense chips.
When the price hovers at a high and suddenly spikes, don’t be greedy for the last bit; decisively take profits.
Volatility
Don't chase after a rapid rise; turning around might lead to a loss.
Don't panic during a sharp drop; wait for the right opportunity to scoop up.
Avoid excessive trading during sideways movement; hold your positions tightly and wait for the right moment — often, the rise is hidden in the 'grinding' last second.
Be wary of rapid price surges; the crazier the rise, the sharper the potential fall; always be prepared to take profits.
Don't panic during gradual declines; averaging down is smarter than blindly cutting losses.
Timing for buying and selling
Don't sell until the price reaches the target; don't buy until it hits the support; during sideways chaos, observe more and act less.
Buy during pullbacks on bearish days, sell during spikes on bullish days; contrarian trading can help you avoid retail traps.
Don't rush to cut losses during a significant morning drop; instead, it might be a buying opportunity. Don't be greedy during a big morning rise; taking profits is the safest choice.
A sudden surge in the afternoon makes chasing high prices risky; if there's a continuous drop, it’s better to wait and reassess the next day.
When the market is stable, it's better to take a break — the costs of frequent trading are scarier than missing out.
If you're stuck in a position and averaging down just to break even, don't think about 'making it back' and fall deeper; greed is the biggest pitfall, and taking profits is the way to win.
Risk awareness section
The calm market suddenly stirs, there may be a big trend hidden behind it.
After several days of significant gains, a pullback is waiting for you; be alert to signals when K lines form a triangle.
In an upward trend, support levels are your confidence; in a downward trend, resistance levels are your barriers.
Trading with a full position is like gambling with your life; stubbornness will lead to backlash.
Market conditions are unpredictable; understand when to 'stop' — take profits to secure gains, cut losses decisively, and be decisive in both entry and exit.
Ultimately, trading cryptocurrencies is about mindset. Greed makes people chase highs, fear makes them cut losses; if you can step out of these two emotions, you've already won half the battle. Those who chase highs and cut losses are always giving money to the market; only by staying calm and following a strategy can you stand firm amid volatility.
Besides the phrases, these practical trading methods are also worth exploring; beginners can learn, and veterans can refine their skills.
Range trading strategy: Most of the time, the market fluctuates within a range. Use BOLL indicators and box theory to find high and low points, sell high and buy low to profit from the price difference. Remember to be cautious with short-term trades; take profits when available.
Breakout strategy: After a long period of sideways movement, the market will eventually choose a direction to break out. Enter early in the breakout phase to quickly secure a profit, but you must develop the ability to 'spot false breakouts,' or you may fall into traps.
Unilateral trend strategy: After a breakout from consolidation, the market often trends in one direction, making it easier to trade with the trend. Buy on pullbacks and sell on rebounds, using K lines, moving averages, and trend lines to gauge the rhythm; with practice, you can ride along with the trend.
Support and resistance strategy: Key resistance and support levels are often battlegrounds for bulls and bears. Use trend lines, Bollinger Bands, and parabolic indicators to pinpoint levels, buying at support and selling at resistance for a much higher win rate.
Pullback and rebound strategy: After a big rise, there will be a small pullback; after a big drop, there will be a small rebound; seizing this 'correction' can lead to easy profits. Focus on K line patterns (like doji stars or hammer lines), and with good market feel, you’ll catch high and low points accurately.
Time-based trading strategy: Morning and afternoon sessions have low volatility, suitable for conservative traders; although earnings are slow, market patterns are easier to grasp. Evening and late-night sessions have high volatility, suitable for aggressive traders; profits come quickly but require high technical and emotional resilience, so beginners should be cautious.
The market never lacks opportunities; what it lacks is prepared individuals. Instead of bumping around in volatility, it’s better to focus on refining strategies — follow the rhythm, control your emotions, and you can turn numbers into real money amid the storms of the crypto world.